{"id":45305,"date":"2014-12-04T08:18:05","date_gmt":"2014-12-04T13:18:05","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=45305"},"modified":"2014-12-04T08:37:16","modified_gmt":"2014-12-04T13:37:16","slug":"hedge-fund-managers-get-hefty-jail-sentence","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2014\/hedge-fund-managers-get-hefty-jail-sentence.html","title":{"rendered":"Hedge Fund Managers Get Hefty Jail Sentence"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/12\/alg-greenwood-walsh-jpg.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-45320\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/12\/alg-greenwood-walsh-jpg-300x207.jpg\" alt=\"alg-greenwood-walsh-jpg\" width=\"300\" height=\"207\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/12\/alg-greenwood-walsh-jpg-300x207.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/12\/alg-greenwood-walsh-jpg.jpg 926w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>New York (HedgeCo.Net) &#8211; NY attorney Preet\u00a0Bharara has announced that Stephen Walsh and Paul Greenwood, co-founders of hedge fund advisory and investment company, WG Trading Company, and WG Trading Investors, were sentenced in Manhattan federal court in connection with a fraudulent commodities trading and investment advisory scheme.<\/p>\n<p>Walsh was sentenced to 20 years in prison, and Greenwood was sentenced to 10 years in prison.<\/p>\n<p>Greenwood pleaded guilty in 2010 to securities fraud, admitting that he cheated charities, schools, pension funds and others out of hundreds of millions of dollars.<\/p>\n<p>&#8220;I have lied. I have cheated. I have stolen,&#8221; Greenwood told the judge, hoping for leniency. &#8220;Words can&#8217;t express my contrition. . . . I am truly sorry for the grief and the heartache my actions have caused.&#8221;<\/p>\n<p>From at least 1996 through February 2009, Walsh and Greenwood solicited $7.6 billion in investor funds on the understanding that they would invest the funds in a program called \u201cequity index arbitrage,\u201d which they represented was a conservative trading strategy that had outperformed the results of the S&amp;P 500 Index for more than 10 years.<\/p>\n<p>As a result, several institutional investors \u2013 including charitable and university foundations, and retirement and pension plans \u2013 invested billions of dollars. Investors either became limited partners in WG Trading Company or received promissory notes issued by WG Trading Investors that WALSH and Greenwood represented would pay interest at a rate equal to the investment returns earned by a limited partner of WG Trading Company.<\/p>\n<p>Alex Akesson<br \/>\nEditor for <a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a> is a premier <a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a> and community for qualified and accredited investors only. Membership in <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; NY attorney Preet\u00a0Bharara has announced that Stephen Walsh and Paul Greenwood, co-founders of hedge fund advisory and investment company, WG Trading Company, and WG Trading Investors, were sentenced in Manhattan federal court in connection with a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-45305","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=45305"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45305\/revisions"}],"predecessor-version":[{"id":45326,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45305\/revisions\/45326"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=45305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=45305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=45305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}